CYBG shares plummet to record low after PPI payment warning
Shares at CYBG, the listed owners of Leeds-headquartered Yorkshire Bank, hit a record low yesterday after plummeting more than 22%.
The bank saw shares drop from 139.9p to 110p in yesterday’s trading – wiping nearly £400m of its market capitalisation. The stock was at one point trading as low as 108.3p, down 22.6% on the previous day.
The huge drop came after the bank announced it had increased its PPI payment to provision by between £300m-£450m after receiving more than eight months’ worth of requests in one month.
It said that there had been an “unprecedented volume” of PPI Information Requests received during August in advance of the PPI complaint deadline of 29 August. This amounted to 340,000 claims over five weeks, of which 120,000 were received in the final three days.
As a result, it expects to increase its provisions for legacy PPI costs by between £300m and £450m.